FX is short for ‘forex’, which in turn is short for ‘foreign exchange’ – it refers to trading currencies, i.e. forex pairs.

The forex trading market is the largest and most liquid market in the world, with a daily turnover of $6,595 billion (statista.com, 2021).

What does it mean to trade currencies?

Trading currencies is the speculation on one currency moving in value against another currency. Traders basically buy one currency while selling another, and trying to close the position with a profit at a later point.

Some participants in the forex market  use the market to hedge their currency exposure, i.e. protect themselves against fluctuations in currency exchange rates.

We recommend using a demo account if you’re about to explore how to start forex trading. Using a demo account can be the best way to learn forex trading.

Author of this article

Bence András Rózsa

Author of this article

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Bence András Rózsa

Broker Analyst

Bence’s purpose is to help you to understand the logic behind financial services. In his master’s studies, he specialised in business economy and finance to be able to give you a clear picture of the brokerage world. Having reviewed multiple brokers and robo-advisor services, his goal will always be to guide you in the world of investing as it is.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

Share

Comments

×